Crypto News | Electric Problem in China it's one reason to bitcoin fall
- China’s prominent regions for Bitcoin mining have suffered an electrical grid blackout, causing Bitcoin’s hash rate to decline.
- Bitcoin price crashed over the weekend, coinciding with the drop of the network’s hash rate.
- However, many analysts believe that Bitcoin’s hash rate only declined by 20% and was not the main reason for the cryptocurrency’s downswing.
Thomas Heller, the co-founder at Compass Mining, explained that mining farms in Xinjiang were closed on April 16 in relation to the coal mine accident earlier in the week.
According to Nic Carter, co-founder of Coin Metrics, based on the recovery of the coming week, estimation could be made of Xinjaing’s share of the Bitcoin network. He added that Xinjiang’s grid going down and its effects on Bitcoin’s hash rate are what economists call a “natural experiment,” which could act as a helpful source of data.
Bitcoin price and hash rate correlation
Prominent analyst Willy Woo suggests that Bitcoin price and hash rate have always been correlated. Woo also looked at the latest hash rate data on a 6h moving average and suggested it has almost been fully recovered. The analyst suggested that this could be a massive buying-the-dip opportunity for those who are looking to enter the market.
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